market performance (d)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Just answer market performance (d) thanks
Transcribed Image Text:Pecunious Products, Inc.'s financial results for the past three years are summarized below:
Year 3
Year 2
Year 1
Sales trend
128.0
115.0
100.0
Current ratio
2.5
2.3
2.2
Acid-test ratio
0.8
0.9
1.1
Accounts receivable turnover
Inventory turnover
Dividend yield
Dividend payout ratio
9.4
10.6
12.5
6.5
7.2
8.0
7.1%
6.5%
5.8%
40%
50%
60%
Return on total assets
12.5%
11.0%
9.5%
Return on equity
Dividends paid per share
14.0%
10.0%
7.8%
P1.50
P1.50
P1.50
Required:
Based on the ratios presented above, discuss your analysis of Pecunious' financial results with
respect to its:
a. Liquidity;
b. Asset management;
c. Profitability; and
d. Market performance
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